BofA Names Europe Loan Head as Overseas Lending Grows

May 21 (Bloomberg) -- Bank of America Corp., the biggest
U.S. lender, appointed Shaun Dreyer as head of investment-grade
loan syndication for Europe, the Middle East and Africa as the
bank seeks to parlay its acquisition of Merrill Lynch & Co. into
a bigger share of debt underwriting outside of the U.S.

Dreyer, a 14-year veteran of the firm, joins as Bank of
America jumps to fifth most-active underwriter of high-grade
loans in Europe this year, with 5 percent of the $103 billion
market, from 21st in 2009, according to data compiled by
Bloomberg. It replaces U.S. rival JPMorgan Chase & Co., which
has fallen to 14th.

“We feel it is time to focus on developing our business in
areas where we have the opportunity to capture more market
share,” Peter Hall, global head of investment-grade syndicated
capital markets with Bank of America Merrill Lynch, said in an
interview.

Bank of America, based in Charlotte, North Carolina, relied
on North America for 82 percent of revenue last year. The bank
overhauled its board amid criticism from investors over its 2008
purchase of Merrill Lynch, which had three times as many
corporate customers in Asia, Europe and the Middle East.

‘Makes Sense’

Dreyer, to be based in London, will report to Hall and Paul
Richards, the head of debt capital markets in Europe, the bank
said in an e-mail.

“Loan demand in the U.S. is still quite weak, so if they
can find creditworthy borrowers overseas, it does make sense to
expand lending outside of the U.S.,” said Gary Townsend,
president of Hill-Townsend Capital, a Chevy Chase, Maryland-based investment firm with $60 million of holdings in financial
companies.

At stake are more than $300 million in annual fees
underwriting European loans, and relationships with borrowers
that may lead to more lucrative work such as stock sales and
mergers advice. Outstanding corporate loans held by U.S. banks
have declined to $1.27 trillion from $1.65 trillion in October
2008, according to data from the Federal Reserve.

Competition among banks is intensifying as their
earnings rebound and they emerge from the worst economic slump
since the Great Depression.

Bank of America leapfrogged 26 spots to third place among
underwriters of German loans after helping to arrange 4.2
billion euros ($5.2 billion) of funds for German drugmaker Merck
KGaA to acquire Millipore Corp., Bloomberg data show.